Compare monetary and fiscal policy — tools, transmission, constraints — and analyse their coordination with Nepal's pandemic-era example.

Meaning: the recurring alternation of expansion and contraction in aggregate economic activity around the trend — the capitalist economy's pulse (not a modern discovery: the Bible's seven fat and seven lean years; the discipline's systematic study from Mitchell and the NBER). Phases (the four-part wheel):1. Expansion/recovery — output, employment, income rising;2. Peak/boom — the top: capacity taut, prices and confidence exuberant;3. Recession — the turn down (the working definition: output falling for two consecutive quarters); depression when deep and long (the Great Depression the archetype — 25% unemployment in America);4. Trough — the bottom; then recovery. The causes (the theories in one line each): demand shocks (Keynes: investment's animal spirits collapsing — the multiplier downward); monetary mismanagement (Friedman: the Depression caused by the Fed's tightening); real shocks (technology, oil); the credit cycle (Minsky: stability breeding instability — the 2008 story); the political cycle (elections' spending). Effects: output and income lost; unemployment (Okun's law: the output-unemployment arithmetic); investment's collapse and recovery's lag; banking stress; the social ledger (the Depression's politics — the extremist wave: the cycle's darkest lesson). Stabilisation policies (the counter-cyclical toolkit — the unit's bridge to 5.3):discretionary fiscal and monetary action against the wind (deficits and low rates in recession; surpluses and tightness in boom — Keynes's prescription) and the automatic stabilisers (the fiscal system's built-in response: tax receipts…